Economic Recovery Stronger Than Expected, Need To Be Watchful Of Demand Sustainability: Shaktikanta Das

Reserve Bank of India (RBI) Governor Shaktikanta Das on Thursday said the country’s economy has recovered stronger than expected from the initial impact of the COVID-19 pandemic, but there is a need to be watchful of demand sustainability after the end of festivities.

Speaking at the annual day event of Foreign Exchange Dealers' Association of India (FEDAI), Das said there are downside risks to growth across the world and also in India.

It can be noted that the Indian economy contracted by 23.9 per cent in the first quarter of the fiscal year, and the RBI expects the economy to shrink by 9.5 per cent in FY21. However, there has been recovery after the opening up of the lockdown restrictions, especially during the festive season.